Reviewing Synchrony Financial (NYSE:SYF) and Prestige Wealth (NASDAQ:PWM)

Synchrony Financial (NYSE:SYF) and Prestige Wealth (NASDAQ:PWM) are both finance companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, valuation, earnings and dividends.

Institutional and Insider Ownership

96.5% of Synchrony Financial shares are owned by institutional investors. Comparatively, 7.7% of Prestige Wealth shares are owned by institutional investors. 0.3% of Synchrony Financial shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Synchrony Financial and Prestige Wealth’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Synchrony Financial	$20.71 billion	0.95	$2.24 billion	$6.97	7.04
Prestige Wealth	$350,000.00	21.06	-$1.04 million	N/A	N/A

Synchrony Financial has higher revenue and earnings than Prestige Wealth.

Profitability

This table compares Synchrony Financial and Prestige Wealth’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Synchrony Financial	13.49%	16.01%	1.84%
Prestige Wealth	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent ratings and price targets for Synchrony Financial and Prestige Wealth, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Synchrony Financial	1	10	12	1	2.54
Prestige Wealth	0	0	0	0	N/A

Synchrony Financial presently has a consensus target price of $46.41, indicating a potential downside of 5.38%. Given Synchrony Financial’s higher possible upside, equities research analysts plainly believe Synchrony Financial is more favorable than Prestige Wealth.

Summary

Synchrony Financial beats Prestige Wealth on 10 of the 11 factors compared between the two stocks.

About Synchrony Financial

Synchrony Financial, together with its subsidiaries, operates as a consumer financial services company in the United States. It provides credit products, such as credit cards, commercial credit products, and consumer installment loans. The company also offers private label credit cards, dual co-brand and general purpose credit cards, short- and long-term installment loans, and consumer banking products; and deposit products, including certificates of deposit, individual retirement accounts, money market accounts, and savings accounts, and sweep and affinity deposits, as well as accepts deposits through third-party securities brokerage firms. In addition, it provides debt cancellation products to its credit card customers through online, mobile, and direct mail; and healthcare payments and financing solutions under the CareCredit and Walgreens brands; payments and financing solutions in the apparel, specialty retail, outdoor, music, and luxury industries, such as American Eagle, Dick's Sporting Goods, Guitar Center, Kawasaki, Pandora, Polaris, Suzuki, and Sweetwater. The company offers its credit products through programs established with a group of national and regional retailers, local merchants, manufacturers, buying groups, industry associations, and healthcare service providers; and deposit products through various channels, such as digital and print. It serves digital, health and wellness, retail, home, auto, telecommunications, jewelry, pets, and other industries. The company was founded in 1932 and is headquartered in Stamford, Connecticut.

About Prestige Wealth

Prestige Wealth Inc., through its subsidiaries, provides wealth management and asset management services. It assists its clients in identifying and purchasing wealth and asset management products. The company offers its services primarily for high net worth and ultra-high net worth individuals, including business owners, executives, heirs of rich families, and other affluent individuals in Asia primarily in the mainland China or Hong Kong. The company was incorporated in 2018 and is based in Central, Hong Kong. Prestige Wealth Inc. is a subsidiary of Prestige Financial Holdings Group Limited.